UC Riverside

This paper estimates feasible water savings for a sample of nine urban water districts in California during the height of the 2012-16 drought, just prior to the implementation of mandatory water use reductions, using household production theory and stochastic frontier analysis. Estimates of feasible savings are compared to mandated reductions and actual reductions in each district. Although the mandated reductions were generally feasible, our results show that they had asymmetric impacts across districts and tended to impose larger burdens on some disadvantaged groups.